The City of Rehoboth Beach is evaluating a public-private partnership with the Clear Space Theatre Company to construct a new performing arts center. City commissioners are scheduled to discuss the proposal, which outlines a long-term land lease and financial contributions, on Monday, October 6th.
If approved, the new facility would be built on city-owned land on Christian Street, currently the site of the Cape Henlopen Senior Center. This move would provide a permanent, larger home for the theater company, which has been seeking a new location for several years.
Key Takeaways
- Rehoboth Beach and Clear Space Theatre are exploring a public-private partnership for a new performing arts center.
- The proposed site is city-owned land on Christian Street, where the Cape Henlopen Senior Center is currently located.
- The draft agreement includes a 30-year land lease at $1 per year, with options for two 10-year renewals.
- The city would contribute $1 million to the project's capital campaign and waive building permit fees.
- A new facility fee on ticket sales would be collected by the city, starting at $1 per ticket.
Details of the Proposed Agreement
Rehoboth Beach commissioners will review the terms of a draft agreement that could secure Clear Space Theatre’s future within the city. The proposal centers on the construction of a modern performing arts venue on land that will soon be vacated by the Cape Henlopen Senior Center, which has already finalized plans to relocate to a new building on Hebron Road.
The core of the agreement is a 30-year triple net land lease. This arrangement would be supplemented by two optional 10-year extensions, potentially creating a 50-year partnership between the city and the theater company.
Lease and Construction Terms
Under the current draft, Clear Space would lease the land for a nominal fee of $1 per year. In exchange, the theater company would be responsible for financing and constructing a new performing arts center estimated to be around 40,000 square feet. The City of Rehoboth Beach would be responsible for demolishing the existing senior center structure before construction begins.
According to the document, Clear Space would maintain complete control over its artistic and business operations. The agreement states, "The land lease between Clear Space shall in no way impact Clear Space’s full creative autonomy in its artistic and business endeavors." This includes the freedom to select its own architect for the project.
Background: The Cape Henlopen Senior Center's planned move to Hebron Road creates an opportunity for the city to repurpose the valuable Christian Street property, making the proposed partnership with Clear Space a timely consideration for downtown development.
Financial Framework and City Involvement
The financial structure of the proposed partnership involves contributions from both the city and the theater. The City of Rehoboth Beach would commit $1 million to the theater’s capital campaign. This funding would be distributed in five annual payments of $200,000, with the first installment scheduled for 2026.
In addition to the direct financial support, the city would also waive building permit fees associated with the new construction, reducing the overall project cost for Clear Space. To create a revenue stream for the city, the agreement introduces a new facility fee to be added to ticket sales.
Ticket Fee Structure
- Years 1-5: $1 per ticket
- The fee would gradually increase over the life of the lease, eventually reaching $3 per ticket.
While Clear Space would operate independently, the proposal ensures communication through city representation. A city commissioner would serve as a non-voting, ex officio member of the Clear Space Building Committee during the development phase. Once the facility is operational, Clear Space would also become eligible to apply for the city's community partner funding, similar to other local arts institutions.
Parking and Revenue
The proposal addresses parking needs with plans for either surface or underground options on the property. A specific number of spaces would be reserved for exclusive use by Clear Space. However, the agreement clearly stipulates that the City of Rehoboth Beach would retain all revenue generated from the parking facilities on the parcel.
A Long Search for a Permanent Home
This potential partnership follows a long and sometimes challenging search for a new home for Clear Space Theatre. The company has outgrown its current facility on Baltimore Avenue and requires more space to accommodate its programming and audience growth.
"We’re trying to be very thoughtful about what this region is going to need, not just tomorrow or in five years, but in 25 or 35 years. Because what we build, we’re going to build to be sustainable for the long term."
– Joe Gfaller, Managing Director of Clear Space Theatre, in an April statement
The need for a new venue became publicly evident earlier this year. In April, Clear Space representatives presented a proposal to the Lewes City Council, exploring the possibility of relocating to the neighboring city. This move highlighted the urgency of their search for a larger, more permanent location.
Previous Plans and Community Feedback
Years ago, Clear Space had a different plan to build a new facility at the entrance to Rehoboth Beach, on the 400 block of Rehoboth Avenue. That project was ultimately abandoned after facing significant public opposition and a protracted series of approvals and reversals from the city, which led to the threat of legal action.
The company eventually sold the Rehoboth Avenue property. That lot is now the site of three mixed-use buildings currently under construction. The new proposal for the Christian Street location appears to be a renewed effort to find a mutually beneficial solution that keeps the prominent arts organization within Rehoboth Beach.
The city commissioners' special meeting on Monday will be a critical step in determining the future of this proposal. The terms remain open for discussion and potential revision before any final agreement is approved.